Panera Bread 10-Year Lease Extension and Drive-Thru Expansion Finalized in Escrow
CORONA DEL MAR, CALIF. – (RealEstateRama) — Hanley Investment Group Real Estate Advisors, a nationally-recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that Executive Vice President Eric Wohl negotiated the sale of Raceway Commons, a 32,748-square-foot multi-tenant retail in the city of Indianapolis, Indiana. The purchase price was $7.9 million.
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Wohl represented the buyer, a private investor from Franklin Lakes, NJ, and the seller, Baceline Investments from Denver, CO.
Raceway Commons is located on 4.85 acres at 55 South Raceway Road, at the signalized intersection of Rockville Road (US 36) and Raceway Road on the west side of Indianapolis. Built in 2003, the neighborhood shopping center had 94% occupancy with 95% of the occupied square footage leased to national or regional tenants at the time of the sale including Panera Bread, Jackson Hewitt, Sprint, Great Clips, Cold Stone Creamery, and Sun Tan City.
According to Wohl, Hanley Investment Group generated multiple qualified offers due to the strong location and Panera’s interest in adding a drive-thru and extending their lease. “Because we were the second brokerage company to market the property, we thoroughly reviewed the property and existing tenants to find ways to maximize value and peak investor interest. Utilizing our extensive proprietary database, we were able to procure a qualified 1031 exchange buyer and help an experienced multi-family owner through his first retail purchase,” Wohl said. “The buyer acquired the asset with new financing but did not have a loan contingency and the escrow process went very smoothly. This transaction is a great example of Hanley Investment Group adding value to their clients.”
Raceway Commons offered the buyer a high traffic, signalized-intersection location with approximately 65,000 cars per day, excellent access and visibility, a great national and regional tenant mix, and is located in the dominant trade area, reports Wohl. “Raceway Commons is located on Rockville Road, which is the main retail thoroughfare in western Indianapolis with major credit tenants including Sam’s Club, Super Target, Walmart Supercenter, Bed Bath & Beyond, Best Buy, Big Lots, Dick’s Sporting Goods, Gander Mountain, H.H. Gregg, Hobby Lobby, HomeGoods, Kroger, LA Fitness, Lowe’s, Marshalls, Meijer, Menards, Michaels, PetSmart, and Sears,” added Wohl.
“It still remains a great time to sell,” said Wohl. “While supply of available product is beginning to increase, investors are still paying a premium for the right location. 1031 exchange buyers continue to be a significant driver to the retention of peak pricing, causing most non-exchange investors frustration as they find it challenging to compete with such aggressive capital. Even with the threat of rising interest rates, I don’t see prices changing through the end of the year as demand remains strong.”
About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a retail investment advisory firm with a $5 billion transaction track record nationwide, who works closely with individual investors, lending institutions, developers, and institutional property owners in every facet of the transaction to ensure that the highest value is achieved. For more information, visit www.hanleyinvestment.com.